Thursday, February 02, 2017

Malton: Next Upleg Coming

Malton broke above its intermediate downtrend line, SS at RM0.63 in October last year. It then rallied to a high of RM0.78 before it pulled back to its 10-week SMA line at RM0.65 in early January this year. Now Malton is rising again. Indicators are fairly positive: MACD is now in positive territory; and ADX is poised to breach the 20 mark.

As Malton approaches its October 2016 high of RM0.78 (a resistance level), we should be looking out for either an upside breakout of that resistance (which may lead to a sharp rally) or a failed test and pullback. If the latter developed, Malton could provide a good entry at about RM0.75. Currently, Malton is at RM0.76.

Chart 1: Malton's weekly chart as at Feb 2, 2017_9.30 (Source: MalaysiaStock.Biz)

The chart of Malton-WB is consistent with that of the share. It could be a good proxy to ride this play. Currently, Malton-WB is at RM0.195. Good entry is at RM0.17.   

Chart 2: Malton-WB's weekly chart as at Feb 2, 2017_9.27 (Source: MalaysiaStock.Biz)

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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